Tesco introduces euro via cash machines at supermarkets

It is news likely to alarm patriotic defenders of the pound determined to keep Britain free from the euro. But the single currency is creeping on to Britain's stores and banks via the humble cash machine.

Tesco is trialling ATMs that dispense euro notes in four of its stores located near airports and international rail terminals. Meanwhile, Royal Bank of Scotland is planning a pilot of euro-dispensing cash machines over the summer.

Tesco said it was testing the ATMs "to see if there is an appetite for it". The four stores chosen are in Ashford, Kent, near the Ashford International rail terminal and close to Gatwick airport; in Long Eaton, Derbyshire, not far from East Midlands airport; and in Altrincham, near Manchester airport. A Tesco spokesman said it was too early to say whether it would be rolling out the euro ATMs to other parts of the country.

RBS will be installing similar machines in an undisclosed number of RBS and NatWest branches. Those chosen will be locations where there is a high demand for the single currency from holidaymakers and business people. A spokeswoman says customers will not have to pay an ATM fee or a foreign currency loading fee. However, they will be asked to accept the exchange rate before the euros are dispensed.

Graham Mott, a spokesman for cash machine network Link, said that, assuming the pilots were successful, there were likely to be more such machines introduced in the coming months. It means shoppers can stock up on euros while they are in the supermarket picking up their suntan lotion and other holiday items, instead of perhaps having to go to a bureau de change, he added. Link has set the rules so that the equivalent sterling value and the exchange rate are clearly displayed to the ATM user. "The rate will have to be competitive with the other channels that will be available to them," said Mr Mott.

Cash machines could soon be dispensing a lot more than pounds and euros. A new breed of broadband-enabled "kiosk" allowing people to download music, ringtones and games, and print photos, as well as withdraw cash, is being launched by independent ATM operator Bank Machine. The company has teamed up with another company, Felix Group, on the venture. Bank Machine said the new kiosks were "perfect for supermarkets, railway stations, leisure centres, colleges, pubs and airports".